MIDLAND FUNDING, LLC VS. ROSA GIAMBANCO A-1651-09T3
In this appeal, we review a consent judgment in which the judgment-creditor waived notice under Rule 4:59-1(d) in the event of default upon the conditions of settlement incorporated into the consent judgment. The Law Division judge found certain provisions of the consent judgment contrary to public policy and struck the contrary provisions before otherwise approving the consent judgment.
We held that such consent judgments are not contrary to public policy, provided the judgment-debtor's waiver of notice under Rule 4:59-1(d) is knowing and informed. Because the proposed consent judgment was deficient in that it failed to advise the judgment-debtor of the nature and consequences of the waiver, we concluded the Law Division judge properly rejected the order as proposed. We additionally held where a court rejects the terms of a consent judgment, it may not, absent concurrence by all parties, strike the offending provisions and then approve the consent judgment as modified by the court. Rather, we concluded the court must return the matter to its pre-settlement status. 10-3-11